
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC291]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
               Subchapter B--Computation of Taxable Income
 
      PART XI--SPECIAL RULES RELATING TO CORPORATE PREFERENCE ITEMS
 
Sec. 291. Special rules relating to corporate preference items


(a) Reduction in certain preference items, etc.

    For purposes of this subtitle, in the case of a corporation--

               (1) Section 1250 capital gain treatment

        In the case of section 1250 property which is disposed of during 
    the taxable year, 20 percent of the excess (if any) of--
            (A) the amount which would be treated as ordinary income if 
        such property was section 1245 property, over
            (B) the amount treated as ordinary income under section 1250 
        (determined without regard to this paragraph),

    shall be treated as gain which is ordinary income under section 1250 
    and shall be recognized notwithstanding any other provision of this 
    title. Under regulations prescribed by the Secretary, the provisions 
    of this paragraph shall not apply to the disposition of any property 
    to the extent section 1250(a) does not apply to such disposition by 
    reason of section 1250(d).

                (2) Reduction in percentage depletion

        In the case of iron ore and coal (including lignite), the amount 
    allowable as a deduction under section 613 with respect to any 
    property (as defined in section 614) shall be reduced by 20 percent 
    of the amount of the excess (if any) of--
            (A) the amount of the deduction allowable under section 613 
        for the taxable year (determined without regard to this 
        paragraph), over
            (B) the adjusted basis of the property at the close of the 
        taxable year (determined without regard to the depletion 
        deduction for the taxable year).

         (3) Certain financial institution preference items

        The amount allowable as a deduction under this chapter 
    (determined without regard to this section) with respect to any 
    financial institution preference item shall be reduced by 20 
    percent.

                       (4) Certain FSC income

    In the case of taxable years beginning after December 31, 1984, 
section 923(a) \1\ shall be applied with respect to any FSC by 
substituting--
---------------------------------------------------------------------------
    \1\ See References in Text note below.
---------------------------------------------------------------------------
            (A) ``30 percent'' for ``32 percent'' in paragraph (2), and
            (B) ``\15/23\'' for ``\16/23\'' in paragraph (3).

    If all of the stock in the FSC is not held by 1 or more C 
    corporations throughout the taxable year, under regulations, proper 
    adjustments shall be made in the application of the preceding 
    sentence to take into account stock held by persons other than C 
    corporations.

          (5) Amortization of pollution control facilities

        If an election is made under section 169 with respect to any 
    certified pollution control facility, the amortizable basis of such 
    facility for purposes of such section shall be reduced by 20 
    percent.

(b) Special rules for treatment of intangible drilling costs and mineral 
        exploration and development costs

    For purposes of this subtitle, in the case of a corporation--

                           (1) In general

        The amount allowable as a deduction for any taxable year 
    (determined without regard to this section)--
            (A) under section 263(c) in the case of an integrated oil 
        company, or
            (B) under section 616(a) or 617(a),

    shall be reduced by 30 percent.

      (2) Amortization of amounts not allowable as deductions 
                             under paragraph (1)

        The amount not allowable as a deduction under section 263(c), 
    616(a), or 617(a) (as the case may be) for any taxable year by 
    reason of paragraph (1) shall be allowable as a deduction ratably 
    over the 60-month period beginning with the month in which the costs 
    are paid or incurred.

                          (3) Dispositions

        For purposes of section 1254, any deduction under paragraph (2) 
    shall be treated as a deduction allowable under section 263(c), 
    616(a), or 617(a) (whichever is appropriate).

                 (4) Integrated oil company defined

        For purposes of this subsection, the term ``integrated oil 
    company'' means, with respect to any taxable year, any producer of 
    crude oil to whom subsection (c) of section 613A does not apply by 
    reason of paragraph (2) or (4) of section 613A(d).

                (5) Coordination with cost depletion

        The portion of the adjusted basis of any property which is 
    attributable to amounts to which paragraph (1) applied shall not be 
    taken into account for purposes of determining depletion under 
    section 611.

(c) Special rules relating to pollution control facilities

    For purposes of this subtitle--

               (1) Accelerated cost recovery deduction

        Section 168 shall apply with respect to that portion of the 
    basis of any property not taken into account under section 169 by 
    reason of subsection (a)(5).

                         (2) 1250 Recapture

        Subsection (a)(1) shall not apply to any section 1250 property 
    which is part of a certified pollution control facility (within the 
    meaning of section 169(d)(1)) with respect to which an election 
    under section 169 was made.

(d) Special rule for real estate investment trusts

    In the case of a real estate investment trust (as defined in section 
856), the difference between the amounts described in subparagraphs (A) 
and (B) of subsection (a)(1) shall be reduced to the extent that a 
capital gain dividend (as defined in section 857(b)(3)(C), applied 
without regard to this section) is treated as paid out of such 
difference. Any capital gain dividend treated as having been paid out of 
such difference to a shareholder which is an applicable corporation 
retains its character in the hands of the shareholder as gain from the 
disposition of section 1250 property for purposes of applying subsection 
(a)(1) to such shareholder.

(e) Definitions

    For purposes of this section--

              (1) Financial institution preference item

        The term ``financial institution preference item'' includes the 
    following:

        [(A) Repealed. Pub. L. 101-508, title XI, Sec. 11801(c)(12)(B), 
                Nov. 5, 1990, 104 Stat. 1388-527]

        (B) Interest on debt to carry tax-exempt obligations acquired 
                after December 31, 1982, and before August 8, 1986

            (i) In general

                In the case of a financial institution which is a bank 
            (as defined in section 585(a)(2)), the amount of interest on 
            indebtedness incurred or continued to purchase or carry 
            obligations acquired after December 31, 1982, and before 
            August 8, 1986, the interest on which is exempt from taxes 
            for the taxable year, to the extent that a deduction would 
            (but for this paragraph or section 265(b)) be allowable with 
            respect to such interest for such taxable year.
            (ii) Determination of interest allocable to 
                    indebtedness on tax-exempt obligations

                Unless the taxpayer (under regulations prescribed by the 
            Secretary) establishes otherwise, the amount determined 
            under clause (i) shall be an amount which bears the same 
            ratio to the aggregate amount allowable (determined without 
            regard to this section and section 265(b)) to the taxpayer 
            as a deduction for interest for the taxable year as--
                    (I) the taxpayer's average adjusted basis (within 
                the meaning of section 1016) of obligations described in 
                clause (i), bears to
                    (II) such average adjusted basis for all assets of 
                the taxpayer.
            (iii) Interest

                For purposes of this subparagraph, the term ``interest'' 
            includes amounts (whether or not designated as interest) 
            paid in respect of deposits, investment certificates, or 
            withdrawable or repurchasable shares.
            (iv) Application of subparagraph to certain 
                    obligations issued after August 7, 1986

            For application of this subparagraph to certain obligations 
        issued after August 7, 1986, see section 265(b)(3).

                 (2) Section 1245 and 1250 property

        The terms ``section 1245 property'' and ``section 1250 
    property'' have the meanings given such terms by sections 1245(a)(3) 
    and 1250(c), respectively.

(Added Pub. L. 97-248, title II, Sec. 204(a), Sept. 3, 1982, 96 Stat. 
423; amended Pub. L. 97-354, Sec. 5(a)(27), Oct. 19, 1982, 96 Stat. 
1694; Pub. L. 97-448, title III, Sec. 306(a)(2), Jan. 12, 1983, 96 Stat. 
2400; Pub. L. 98-369, div. A, title I, Sec. 68(a), (b), title VII, 
Sec. 712(a)(1)(A), (2)-(4), July 18, 1984, 98 Stat. 588, 946; Pub. L. 
99-514, title II, Sec. 201(d)(5), title IV, Secs. 411(a), (b)(2)(C)(ii), 
412(b)(1), title IX, Secs. 901(b)(4), (d)(4)(C), 902(c), title XVIII, 
Secs. 1804(k)(1), (3)(A), 1854(c)(1), 1876(b)(1), Oct. 22, 1986, 100 
Stat. 2140, 2225, 2227, 2378, 2380, 2382, 2809, 2878, 2898; Pub. L. 100-
418, title I, Sec. 1941(b)(5), Aug. 23, 1988, 102 Stat. 1324; Pub. L. 
100-647, title I, Sec. 1009(b)(4), (5), Nov. 10, 1988, 102 Stat. 3449; 
Pub. L. 101-508, title XI, Sec. 11801(c)(12)(B), Nov. 5, 1990, 104 Stat. 
1388-527; Pub. L. 104-188, title I, Secs. 1602(b)(1), 1616(b)(5), Aug. 
20, 1996, 110 Stat. 1833, 1856.)

                       References in Text

    Section 923, referred to in subsec. (a)(4), was repealed by Pub. L. 
106-519, Sec. 2, Nov. 15, 2000, 114 Stat. 2423.


                               Amendments

    1996--Subsec. (e)(1)(B)(i). Pub. L. 104-188, Sec. 1616(b)(5), struck 
out ``or to which section 593 applies'' after ``585(a)(2))''.
    Subsec. (e)(1)(B)(iv), (v). Pub. L. 104-188, Sec. 1602(b)(1), 
redesignated cl. (v) as (iv) and struck out former cl. (iv) which read 
as follows: ``Special rules for obligations to which section 133 
applies.--In the case of an obligation to which section 133 applies, 
interest on such obligation shall not be treated as exempt from taxes 
for purposes of this subparagraph.''
    1990--Subsec. (e)(1)(A). Pub. L. 101-508 struck out subpar. (A) 
``Excess reserves for losses on bad debts of financial institutions'' 
which read as follows: ``In the case of a financial institution to which 
section 585 applies, the excess of--
        ``(i) the amount which would, but for this section, be allowable 
    as a deduction for the taxable year for a reasonable addition to a 
    reserve for bad debts, over
        ``(ii) the amount which would have been allowable had such 
    institution maintained its bad debt reserve for all taxable years on 
    the basis of actual experience.''
    1988--Subsec. (b)(4). Pub. L. 100-418 amended par. (4) generally. 
Prior to amendment, par. (4) read as follows: ``For purposes of this 
subsection, the term `integrated oil company' means, with respect to any 
taxable year, any producer (within the meaning of section 4996(a)(1)) of 
crude oil other than an independent producer (within the meaning of 
section 4992(b)).''
    Subsec. (e)(1)(B)(i). Pub. L. 100-647, Sec. 1009(b)(5), substituted 
``section 585(a)(2)'' for ``section 582(a)(2)''.
    Subsec. (e)(1)(B)(iv), (v). Pub. L. 100-647, Sec. 1009(b)(4), 
redesignated cl. (iv), relating to application of subparagraph to 
certain obligations issued after Aug. 7, 1986, as (v).
    1986--Subsec. (a). Pub. L. 99-514, Sec. 1804(k)(3)(A), substituted 
``Reduction'' for ``20-percent reduction'' in heading.
    Subsec. (a)(1)(A). Pub. L. 99-514, Sec. 201(d)(5)(A), struck out 
``or section 1245 recovery property'' after ``section 1245 property''.
    Subsec. (a)(2). Pub. L. 99-514, Sec. 412(b)(1), substituted ``20 
percent'' for ``15 percent''.
    Subsec. (a)(4). Pub. L. 99-514, Sec. 1876(b)(1), substituted 
``Certain FSC income'' for ``Certain deferred FSC income'' in heading 
and amended text generally. Prior to amendment, text read as follows: 
``If a C corporation is a shareholder of the FSC, in the case of taxable 
years beginning after December 31, 1984, section 923(a) shall be applied 
with respect to such corporation by substituting--
        ``(A) `30 percent' for `32 percent' in paragraph (2), and
        ``(B) `15/23' for `16/23' in paragraph (3).''
    Pub. L. 99-514, Sec. 1804(k)(1), substituted ``If a C corporation'' 
for ``If a corporation''.
    Subsec. (b)(1). Pub. L. 99-514, Sec. 411(a)(1), (b)(2)(C)(ii), 
substituted ``30 percent'' for ``20 percent'' in closing provisions and 
``617(a)'' for ``617'' in subpar. (B).
    Subsec. (b)(2) to (6). Pub. L. 99-514, Sec. 411(a)(2), added pars. 
(2) to (5) and struck out former pars. (2) to (6) as follows: former 
par. (2), special rule for amounts not allowable as deductions under 
paragraph (1), related in subpar. (A) to intangible drilling costs and 
in subpar. (B) to mineral exploration and development costs; former par. 
(3) defined applicable percentage in accordance with table for taxable 
years 1 to 5; former par. (4) dispositions, related in subpar. (A) to 
oil, gas, and geothermal property, in subpar. (B) to application of 
section 617(d) of this title, and in subpar. (C) to recapture of 
investment credit; former par. (5) defined integrated oil company; and 
former par. (6) related to coordination with cost depletion.
    Subsec. (c)(1). Pub. L. 99-514, Sec. 201(d)(5)(B), amended par. (1) 
generally. Prior to amendment, par. (1) read as follows: ``For purposes 
of subclause (1) of section 168(d)(1)(A)(ii), a taxpayer shall not be 
treated as electing the amortization deduction under section 169 with 
respect to that portion of the basis not taken into account under 
section 169 by reason of subsection (a)(5).''
    Subsec. (e)(1)(A). Pub. L. 99-514, Sec. 901(b)(4), struck out ``or 
593'' after ``section 585''.
    Subsec. (e)(1)(B). Pub. L. 99-514, Sec. 902(c)(2)(C), substituted 
``1982, and before August 8, 1986'' for ``1982'' in heading.
    Subsec. (e)(1)(B)(i). Pub. L. 99-514, Sec. 902(c)(1), (2)(A), 
substituted ``1982, and before August 8, 1986'' for ``1982'' and ``(but 
for this paragraph or section 265(b))'' for ``(but for this 
paragraph)''.
    Pub. L. 99-514, Sec. 901(d)(4)(C), substituted ``which is a bank (as 
defined in section 582(a)(2)) or to which section 593 applies'' for ``to 
which section 585 or 593 applies''.
    Subsec. (e)(1)(B)(ii). Pub. L. 99-514, Sec. 902(c)(2)(B), inserted 
``and section 265(b)''.
    Subsec. (e)(1)(B)(iv). Pub. L. 99-514, Sec. 1854(c)(1), added cl. 
(iv) relating to special rules for obligations to which section 133 
applies.
    Pub. L. 99-514, Sec. 902(c)(2)(D), added cl. (iv) relating to 
application of subparagraph to certain obligations issued after August 
7, 1986.
    Subsec. (e)(2). Pub. L. 99-514, Sec. 201(d)(5)(C), struck out ``, 
`section 1245 recovery property','' after `` `section 1245 property' '' 
and directed that par. (2) be amended by striking out ``, section 
1245(a)(5),'' which was executed by striking out ``, 1245(a)(5),'' after 
``sections 1245(a)(3)'' to reflect the probable intent of Congress.
    1984--Subsec. (a). Pub. L. 98-369, Sec. 68(a), which directed that 
each subsection be amended by substituting ``20 percent'' for ``15 
percent'' wherever appearing, was executed in heading by substituting 
``20-percent'' for ``15-percent'' to reflect the probable intent of 
Congress.
    Subsec. (a)(1). Pub. L. 98-369, Sec. 68(a), substituted ``20 
percent'' for ``15 percent'' in provisions preceding subpar. (A).
    Pub. L. 98-369, Sec. 712(a)(1)(A)(ii), inserted ``under section 
1250'' in provisions following subpar. (B).
    Subsec. (a)(1)(B). Pub. L. 98-369, Sec. 712(a)(1)(A)(i), inserted 
``(determined without regard to this paragraph)''.
    Subsec. (a)(3). Pub. L. 98-369, Sec. 68(a), substituted ``20 
percent'' for ``15 percent''.
    Subsec. (a)(4). Pub. L. 98-369, Sec. 68(b), amended par. (4) 
generally. Prior to amendment, par. (4) read as follows:
    ``(4) Certain deferred disc income.--If a corporation is a 
shareholder of a DISC, in the case of taxable years beginning after 
December 31, 1982, section 995(b)(1)(F)(i) shall be applied with respect 
to such corporation by substituting `57.5 percent' for `one-half'.''
    Subsec. (a)(5). Pub. L. 98-369, Sec. 68(a), substituted ``20 
percent'' for ``15 percent''.
    Subsec. (b)(1). Pub. L. 98-369, Sec. 68(a), substituted ``20 
percent'' for ``15 percent'' in provisions following subpar. (B).
    Subsec. (b)(2)(B)(ii). Pub. L. 98-369, Sec. 712(a)(2), inserted ``in 
the case of a deposit located in the United States,''.
    Subsec. (b)(6). Pub. L. 98-369, Sec. 712(a)(3), substituted 
``attributable to amounts to which paragraph (1) applied'' for 
``attributable to intangible drilling and development costs or mining 
exploration and development costs''.
    Subsec. (e)(1)(B)(iii). Pub. L. 98-369, Sec. 712(a)(4), added cl. 
(iii).
    1983--Subsec. (a)(1). Pub. L. 97-448 inserted provision that, under 
regulations prescribed by the Secretary, the provisions of this 
paragraph shall not apply to the disposition of any property to the 
extent section 1250(a) does not apply to such disposition by reason of 
section 1250(d).
    1982--Subsec. (a). Pub. L. 97-354, Sec. 5(a)(27)(A), substituted ``a 
corporation'' for ``an applicable corporation'' wherever appearing.
    Subsec. (b). Pub. L. 97-354, Sec. 5(a)(27)(A), substituted ``a 
corporation'' for ``an applicable corporation''.
    Subsec. (e)(2), (3). Pub. L. 97-354, Sec. 5(a)(27)(B), redesignated 
par. (3) as (2). Former par. (2), defining ``applicable corporation'', 
was struck out.


                    Effective Date of 1996 Amendment

    Amendment by section 1602(b)(1) of Pub. L. 104-188 applicable to 
loans made after Aug. 20, 1996, with exception and provisions relating 
to certain refinancings, see section 1602(c) of Pub. L. 104-188, set out 
as an Effective Date of Repeal note under former section 133 of this 
title.
    Amendment by section 1616(b)(5) of Pub. L. 104-188 applicable to 
taxable years beginning after Dec. 31, 1995, see section 1616(c) of Pub. 
L. 104-188, set out as a note under section 593 of this title.


                    Effective Date of 1988 Amendments

    Amendment by Pub. L. 100-647 effective, except as otherwise 
provided, as if included in the provision of the Tax Reform Act of 1986, 
Pub. L. 99-514, to which such amendment relates, see section 1019(a) of 
Pub. L. 100-647, set out as a note under section 1 of this title.
    Amendment by Pub. L. 100-418 applicable to crude oil removed from 
the premises on or after Aug. 23, 1988, see section 1941(c) of Pub. L. 
100-418, set out as a note under section 164 of this title.


                    Effective Date of 1986 Amendment

    Amendment by section 201(d)(5) of Pub. L. 99-514 applicable to 
property placed in service after Dec. 31, 1986, in taxable years ending 
after such date, with exceptions, see sections 203 and 204 of Pub. L. 
99-514, set out as a note under section 168 of this title.
    Amendment by section 201(d)(5) of Pub. L. 99-514 not applicable to 
any property placed in service before Jan. 1, 1994, if such property 
placed in service as part of specified rehabilitations, not applicable 
to certain additional rehabilitations, see section 251(d)(2), (3) of 
Pub. L. 99-514, set out as a note under section 46 of this title.
    Amendment by section 411(a), (b)(2)(C)(ii) of Pub. L. 99-514 
applicable, except as otherwise provided, to costs paid or incurred 
after Dec. 31, 1986, in taxable years ending after such date, see 
section 411(c) of Pub. L. 99-514 set out as a note under section 263 of 
this title.
    Section 412(b)(2) of Pub. L. 99-514 provided that: ``The amendment 
made by paragraph (1) [amending this section] shall apply to taxable 
years beginning after December 31, 1986.''
    Amendment by section 901(b)(4), (d)(4)(C) of Pub. L. 99-514 
applicable to taxable years beginning after Dec. 31, 1986, see section 
901(e) of Pub. L. 99-514, set out as a note under section 166 of this 
title.
    Amendment by section 902(c) of Pub. L. 99-514 applicable to taxable 
years ending after Dec. 31, 1986, with certain exceptions and 
qualifications, see section 902(f) of Pub. L. 99-514, set out as a note 
under section 265 of this title.
    Section 1804(k)(1) of Pub. L. 99-514 provided that amendment made by 
section 1804(k)(1) of Pub. L. 99-514 is effective with respect to 
taxable years beginning after Dec. 31, 1982.
    Amendment by sections 1804(k)(3)(A), 1854(c)(1), and 1876(b)(1) of 
Pub. L. 99-514 effective, except as otherwise provided, as if included 
in the provisions of the Tax Reform Act of 1984, Pub. L. 98-369, div. A, 
to which such amendment relates, see section 1881 of Pub. L. 99-514, set 
out as a note under section 48 of this title.


                    Effective Date of 1984 Amendment

    Section 68(e) of Pub. L. 98-369, as amended by Pub. L. 99-514, 
Sec. 2, title XVIII, Sec. 1804(k)(2), Oct. 22, 1986, 100 Stat. 2095, 
2809, provided that:
    ``(1) In general.--Except as provided in this subsection, the 
amendments made by this section [amending this section and sections 57 
and 995 of this title] shall apply to taxable years beginning after 
December 31, 1984.
    ``(2) 1250 gain.--The amendments made by this section to section 
291(a)(1) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], 
and the amendment made by subsection (c)(2) of this section [amending 
section 57 of this title], shall apply to sales or other dispositions 
after December 31, 1984, in taxable years ending after such date.
    ``(3) Pollution control facilities.--The amendments made by this 
section to section 291(a)(5) of such Code, and so much of the amendment 
made by subsection (c)(1) of this section [amending section 57 of this 
title] as relates to pollution control facilities, shall apply to 
property placed in service after December 31, 1984, in taxable years 
ending after such date.
    ``(4) Drilling and mining costs.--The amendments made by this 
section to section 291(b) of such Code shall apply to expenditures after 
December 31, 1984, in taxable years ending after such date.''
    Amendment by section 712 of Pub. L. 98-369 effective as if included 
in the provision of the Tax Equity and Fiscal Responsibility Act of 
1982, Pub. L. 97-248, to which such amendment relates, see section 715 
of Pub. L. 98-369, set out as a note under section 31 of this title.


                    Effective Date of 1983 Amendment

    Amendment by Pub. L. 97-448 effective as if included in the 
provisions of the Tax Equity and Fiscal Responsibility Act of 1982, Pub. 
L. 97-248, to which such amendment relates, see section 311(d) of Pub. 
L. 97-448, set out as a note under section 31 of this title.


                    Effective Date of 1982 Amendment

    Amendment by Pub. L. 97-354 applicable to taxable years beginning 
after Dec. 31, 1982, see section 6(a) of Pub. L. 97-354, set out as an 
Effective Date note under section 1361 of this title.


                             Effective Date

    Section 204(d) of Pub. L. 97-248, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
    ``(1) In general.--Except as provided in this subsection, the 
amendments made by this section [enacting this section and amending 
sections 57 and 263 of this title] shall apply to taxable years 
beginning after December 31, 1982.
    ``(2) 1250 Gain.--Section 291(a)(1) of the Internal Revenue Code of 
1986 [formerly I.R.C. 1954] shall apply to sales or other disposition 
after December 31, 1982, in taxable years ending after such date.
    ``(3) Pollution control facilities.--Section 291(a)(5) of such Code 
shall apply to property placed in service after December 31, 1982, in 
taxable years ending after such date.
    ``(4) Drilling and mining costs.--Section 291(b) of such Code shall 
apply to expenditures after December 31, 1982, in taxable years ending 
after such date.
    ``(5) Reduction in percentage depletion for coal and iron ore.--
Section 291(a)(2) of such Code shall apply to taxable years beginning 
after December 31, 1983.
    ``(6) Minimum tax.--The amendment made by subsection (b) [amending 
section 57 of this title] shall apply to taxable years ending after 
December 31, 1982, with respect to items of tax preference described in 
section 57(b) of such Code to which section 291 of such Code applies; 
except that in the case of an item described in section 291(a)(2) of 
such Code, such amendment shall apply to taxable years beginning after 
December 31, 1983.''


                            Savings Provision

    For provisions that nothing in amendment by Pub. L. 101-508 be 
construed to affect treatment of certain transactions occurring, 
property acquired, or items of income, loss, deduction, or credit taken 
into account prior to Nov. 5, 1990, for purposes of determining 
liability for tax for periods ending after Nov. 5, 1990, see section 
11821(b) of Pub. L. 101-508, set out as a note under section 29 of this 
title.


           Plan Amendments Not Required Until January 1, 1989

    For provisions directing that if any amendments made by subtitle A 
or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or title XVIII 
[Secs. 1800-1899A] of Pub. L. 99-514 require an amendment to any plan, 
such plan amendment shall not be required to be made before the first 
plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. 
L. 99-514, as amended, set out as a note under section 401 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in sections 56, 57, 59, 263, 263A, 264, 
265, 871, 1250, 1277, 1363 of this title.
